Pearse Doherty (Donegal, Sinn Fein)
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43. To ask the Minister for Finance his views on the EU Commission’s proposed common consolidated corporate tax base; and if he will make a statement on the matter. [34033/16]

Michael Noonan (Limerick City, Fine Gael)
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The European Commission's recently published proposal for a common consolidated corporate tax base is both complex and detailed.  The proposal was drafted by the Commission and discussions by Member States on the proposal are just beginning.  The proposal is likely to be subject to substantial changes as these discussions progress. 

The common base proposal is intended to provide a single agreed set of rules for how a company calculates its taxable profits in each Member State.  It would require Member States to agree what type of income is taxable, what expenses are tax deductible and what corporation tax incentives are available

The new common base would be mandatory for companies with a worldwide group turnover of over €750 million.  Member States would keep their existing tax bases for smaller companies. Under the consolidation element of the proposal a corporate group's profits within the EU would be added together and divided up among all EU countries based on a formula which looks at the location of sales, assets and staff.

Ireland and other Member States will need to analyse the proposal in detail and consider its potential impact on national tax systems.We will engage constructively in these discussions while critically analysing whether the proposal is in line with our long-term interests.

As always, tax remains a matter of Member State competence and unanimity is required before any proposal can be agreed.